7-11-2024 (JAKARTA) Indonesia’s Coordinating Minister for Economic Affairs, Airlangga Hartarto, has expressed confidence in the nation’s ability to increase palm oil production to meet growing biofuel requirements, despite concerns over ageing plantations and delayed replanting programmes.
Speaking at the Indonesia Palm Oil Conference, Minister Airlangga addressed the challenges facing the world’s largest palm oil producer as it prepares to implement a more ambitious biodiesel mandate. The country plans to increase its mandatory palm oil-based fuel blend from the current 35 per cent to 40 per cent in 2025.
According to estimates from APROBI, Indonesia’s biofuel producers association, the enhanced blending requirement could drive palm oil consumption for energy purposes to 13.9 million metric tonnes, up from this year’s projected 11 million tonnes under the existing B35 programme.
To address production challenges stemming from ageing palm trees, the government has intensified its smallholder replanting initiative. Minister Airlangga reported that since 2017, the programme has facilitated the replanting of 360,000 hectares of palm oil plantations, though this falls short of the original target to renew 180,000 hectares annually.
The government is now focusing on implementing improved farming practices to boost yields, recognising the urgent need to increase productivity to meet the rising domestic demand for biofuel.
